Thailand dethrones S.Korea to become biggest automobile exporter to Vietnam
Thailand dethrones S.Korea to become biggest automobile exporter to Vietnam
Thailand topped South Korea to be the biggest automobile exporter to Vietnam with 23,516 completely built units (CBUs) in January-November, up 84 percent against the same period last year, according to official figures from the General Department of Vietnam Customs.
Automobiles that are built thoroughly in one country and then shipped to other nations are called CBUs.
The latest figures from the customs marked a significant rise of Thai-manufactured CBUs, as the Southeast Asian country last year exported 9,100 such vehicles to Vietnam.
Thailand made up 21 percent of cars imported into its neighbor in the first 11 months of 2015, followed by South Korea, China, and India.
In terms of turnover, the total value of CBUs imported from Thailand into Vietnam reached US$406.2 million, up 88 percent year on year, lower than China and South Korea.
The main reasons behind the sharp rise in volume are tax incentives in the ASEAN region and Vietnam is stepping up exports amid a domestic demand slowdown, according to the General Department of Vietnam Customs.
Thailand is currently among the top 10 automobile exporters and the 12th biggest automotive producer worldwide.
According to Thailand’s figures, the country earlier this year set a target to produce two million automobiles, 1.2 million of which will be exported.
Rising appetite for pickups
In November alone, Thailand exported to Vietnam 3,193 CBUs worth over $60.5 million, the biggest part of which was pickup cars, Phap Luat TP.HCM (Ho Chi Minh City Law) reported.
Duc Minh, a man residing in District 5, Ho Chi Minh City told Phap Luat TP.HCM that not only him but many of his friends also buy Thai pickup trucks, which are fuel-efficient vehicles that can carry up to five people and transport about one ton of goods.
Truong Kim Phong, director of sales and marketing of Ford Vietnam, told Phap Luat TP.HCM that Thailand is recognized as a powerhouse of pickup trucks with advanced manufacturing and assembly technologies, which are on a par with those applied in Japan and South Korea.
In addition, Thai pickup trucks are eligible for tax incentives when imported into Vietnam, including a five percent import tariff on a CBU, a representative of Vietnamese importer Truong Hai Auto Corporation (Thaco) told Phap Luat TP.HCM.
Another expert told Phap Luat TP.HCM that Thailand considers pickup trucks strategic products of the automotive sector to turn the country into a global center of the vehicles.
Thai carmakers have invested heavily in developing pickups for customers who live in urban areas.
Therefore, those vehicles have robust designs like what the American trucks are built up to with leather interior and modern technology features, he added.
